• El Salvador has expressed interest in joining the BRICS bloc
• El Salvador may formally apply for BRICS membership within one or two years
• El Salvador proposes settling trade with cryptocurrencies
El Salvador has proposed settling some of its international trade using cryptocurrencies. This overture comes as the country has expressed interest in joining the BRICS economic bloc.
JUST IN:
— BlockNews.com (@blocknewsdotcom) July 31, 2024El Salvador wants to use crypto as settlement with Russia
El Salvador’s Crypto Ambitions
El Salvador made history in 2021 when it became the first country to adopt Bitcoin as legal tender. Since then, the government has continued to embrace cryptocurrencies and blockchain technology.
President Nayib Bukele has stated he wants El Salvador to be a model for other countries looking to utilize digital assets. The government is even planning to build Bitcoin City, a metropolis powered entirely by geothermal energy from volcanoes where taxes will be optional.
Now El Salvador is looking to conduct some of its foreign trade and commerce in cryptocurrency. Russian ambassador to the country, Alexander Khokhlov, recently revealed that El Salvador has proposed settling certain transactions with crypto.
This could allow El Salvador to boost economic ties with other countries while bypassing sanctions and traditional financial institutions. Crypto offers a decentralized alternative for moving money across borders.
Aiming to Join BRICS
El Salvador’s overture also comes as it aims to join the BRICS economic alliance. BRICS consists of Brazil, Russia, India, China, and South Africa.
According to Khokhlov, El Salvador is keen to join BRICS. It has apparently taken steps to be recognized as an observer state within one or two years. Then it plans to formally apply for full membership.
BRICS offers developing economies more influence in global affairs. It also provides an alternative to Western-dominated institutions like the IMF and World Bank.
El Salvador adopting bitcoin was partly a reaction to its reliance on the dollar and US-controlled remittance channels. Joining BRICS would further reduce dependence on the US.
Conclusion
El Salvador continues to position itself at the forefront of crypto adoption. Its ambitions could inspire other developing countries to follow suit. Crypto and decentralization offer a way for poorer nations to exert more autonomy.
